THE Securities and Exchange Commission (SEC) warned the public on Friday against investing in several entities found to be illegally soliciting investments without the required license and authority under Republic Act 8799, or the Securities Regulation Code (SRC).
In a series of advisories, the commission cautioned the public against engaging with Valtoro Spartan, Mad Devpt. Realty Corporation, VT Markets, FBS, and KBS, citing these firms’ failure to secure the necessary secondary license to sell or offer securities to the public.
The SEC said Valtoro Spartan, also operating as Valtoro Spartan Trading, is registered as a corporation but lacks the required authority to solicit investments.
Despite such lack of authorization, the SEC said the firm has been offering so-called “lock-in subscription plans” through its website, enticing the public to invest as little as $50 with promised returns ranging from 7.5 percent after 15 days to as much as 912.5 percent after 12 months.
The scheme also includes referral incentives, such as a direct referral bonus and multi-level commissions, which the SEC flagged as potential indicators of illegal investment-taking activities.
In a separate advisory, the commission found Mad Devpt. Realty Development Corporation, also operating under different names such as Maddev, Madhostel, and Madshostel Siargao, to be offering and distributing securities without prior approval from the commission.
The said firm allegedly invites the public to become “business partners” by investing amounts ranging from P50,000 to P2 million in exchange for shares of stock, dividends, and noncash perks such as hotel discounts and free annual accommodation.
The SEC said these offerings constitute securities under the SRC and require both registration and a secondary license, which the company does not possess.
Meanwhile, the SEC advised the public not to invest, trade, or transact with VT Markets and its related entities, including VT Markets (Pty) Ltd, as these firms were not registered with the commission as corporations, partnerships, or one-person corporations.
Furthermore, despite their active presence on social media and availability on mobile app stores, the entities lack authority to solicit investments or operate as brokers or dealers in the Philippines, the regulator said.
It likewise issued a warning against FBS, including FBS Markets Inc., FBS Broker, and FBS Forex Broker Online, which it said were not registered locally and did not hold a secondary license.
The entities reportedly allow Filipinos to trade over 550 financial instruments through their website and mobile applications while actively promoting investment schemes through online advertisements.
The SEC also flagged KBS and its related entities LS KBS Crypto Trading, KBSEX Exchange, and SDX Exchange, for offering unregistered securities without any corporate registration.
KBS represents itself as a bitcoin exchange operating a mobile application that allegedly serves as a “trading platform for humanitarian missions,” promising daily income and humanitarian benefits in exchange for deposits, typically starting at $100.
The commission said these entities were not registered with the SEC and had no authority to solicit investments or offer securities in the Philippines, nor were these entities enrolled in any regulatory sandbox or innovation program.
The commission warned that individuals acting as sales agents, promoters, recruiters, influencers, or endorsers of these schemes may be held criminally liable under the SRC and the Financial Products and Services Consumer Protection Act.
Violators may face fines of up to P5 million, imprisonment of up to 21 years, or both.
The SEC urged the public to exercise extreme caution when dealing with investment offers, particularly those promising high or guaranteed returns, and encouraged investors to verify registrations through the commission’s official channels.
